PSEG Long Island on Friday submitted a plan to the state Public Service Commission to raise electric rates 2 percent in 2016, 2017 and 2018.
David Daly, president and chief operating officer of PSEG Long Island, said in a release that the proposed plan will generate $216 in additional revenue to allow PSEG to make infrastructure improvements as well as improvements to customer services.
“After our first year in operation, we dramatically improved our overall customer satisfaction, maintained our system reliability and enhanced our storm response process, all while operating within a rate freeze,” Daily said, referring to the utility taking over operation of the electric power in 2014.
PSEG Long Island spokesman Jeffrey Weir said under the proposed rate increase customers use 775 kilowatts of power, will pay an increased $3.25 a month in 2016 and $3.30 for 2017 and 2018.
“We believe it to be a modest increase,” Weir said.
PSEG officials said the also plans to make additional investments as a result of the increased money, including modernizing the power line system, improving customer service and improving storm response and storm preparedness, according to the release.
The New Jersey-based utility took over Long Island’s electrical operations from National Grid at the beginning of 2014, promising to improve storm response, customer service and reliability of service.
LIPA, the state authority which oversees power and gas lines on Long Island but subcontracts out its direct operations to full-service utilities, was blasted by state and local officials for its response and communications after Superstorm Sandy. Gov. Andrew Cuomo signed legislation in 2013 turning over operations to PSEG and reducing LIPA to a holding company with a smaller staff, after a Moreland Commission report found flaws in its previous structure.
National Grid continues to control gas operations.
PSEG, the release said, plans to replace transmission infrastructure, add new technology and use more renewable energy resources as it upgrades Long Island’s electrical grid.
The company is also planning to roll out a better web portal to help customers manage their accounts online, along with a new additions to their call center, according to the release.
One of the storm response initiatives include raising substations to reduce the risk of flooding, which sometimes leads to power outages, according to the release.
If approved by the Public Service Commission, the proposed rate increase would be sent to the Long Island Power Authority board for approval.
PSEG will also hold public comment sessions throughout the year about the plan, and will post the time, date and location of the sessions as they are scheduled.
